PwC and the Urban Land Institute (ULI) released Emerging Trends in Real Estate 2026, the latest industry outlook that breaks down the transformative trends that investors, developers and city leaders should know. The report explores how the industry is adapting amid “economic change, demographic shifts and rapid advances in technology.”
Drawing on insights from various real estate investors, developers, lenders and advisors across the US and Canada, the report aims to identify key opportunities, risks and market shifts that “will shape the industry in the coming year.”
Andrew Alperstein, a partner with PwC’s US real estate practice said:
“The past few years have tested the industry’s ability to pivot. In today’s environment, we’re seeing a renewed focus on core fundamentals and deploying capital into high-growth areas. From the rapid evolution of AI infrastructure to the growing demand for senior housing, the opportunities in 2026 will favor those who combine speed, data-driven insight and a long-term strategic vision.”
Angela Cain, ULI’s Global CEO said:
“Technology continues to play a significant role in driving the U.S. economy, and it’s exciting to see the real estate sector beginning to integrate those advances to harness that power more effectively.”
Cain added:
“We continue to see interest from high-growth asset classes, including data centers, senior housing, and self-storage. Combined with the expectation of additional interest rate cuts, there’s a cautious optimism in the industry as we head into 2026.”
Top 10 “Markets to Watch” in 2026
- Dallas-Fort Worth
- Jersey City
- Miami
- Brooklyn
- Houston
- Nashville
- Northern New Jersey
- Tampa-St. Petersburgh
- Manhattan
- Phoenix
Beyond simple geography, the extensive research report examines how sector dynamics are evolving as investors adapt to new market circumstances. Several property sectors show potential for “growth, innovation and long-term resilience.”
Demand for data centers continues to surge, “driven by rapid growth in artificial intelligence and cloud computing, even as power shortages and supply bottlenecks limit expansion.”
With national vacancy below “2% and most facilities pre-leased before completion, constrained capacity is keeping rents elevated and development competitive.”
Growth is increasingly concentrated in markets with reliable energy access, underscoring how power availability is “defining the next phase of digital infrastructure investment.”
With the first baby boomers turning 80 in 2026, “demand for senior housing is approaching a historic inflection point.”
Limited new supply, evolving care models and “shifting consumer preferences are driving record-high occupancy levels.”
Developers are diversifying offerings, from active adult “independent living lite” communities to wellness-focused and tech-enabled facilities.
Self-storage continues to evolve into a “hybrid asset class with broader appeal.”
Demand is being propelled by housing constraints and “lifestyle trends favoring flexibility.” A subsegment, storage condos, is emerging as an investment opportunity for individuals and small businesses, “blending industrial and personal-use space in innovative ways.”
After a rebound in the past year, the student housing sector is now said to be navigating a fairly complex outlook.
Simplified federal financial aid, “a record high school graduating class, and robust international enrollment in US higher education combined to deliver the strongest gains in years.” Student housing appears to have mirrored that growth, “with near-record absorption, high occupancy, and steady rent increases.”
However, as demographic headwinds, “ongoing visa delays, and rising construction costs emerge, the sector now enters a complex and uncertain phase.”
The office sector is stabilizing as so-called “top-tier” buildings in key markets capture record rents, even as the “overall valuations remain far below pre-pandemic peaks.”
Lower-quality and less central properties continue to face “elevated vacancies, reflecting a widening divide between trophy assets and struggling stock.”
This bifurcation, by building class and geography, “suggests that recovery will be selective and uneven across the sector.”
Collectively, these sectors indicate a seemingly broader and more prevalent industry trend: real estate / property market’s anticipated growth will be powered by tech advancements, adaptation, efficiency as well as strategic reinvention.